Thu | Nov 15, 2018

Digicel wins appeal of merger ruling

Published:Tuesday | December 23, 2014 | 8:58 AM

Barbara Gayle, Justice Coordinator

KINGSTON, Jamaica:

Telecommunications Provider Digicel has won its appeal against a Supreme Court ruling that the Fair Trading Commission (FTC) had jurisdiction to intervene in the Digicel/Claro Merger.

The FTC had filed a claim in the Supreme Court in 2011 after it completed an investigation into the Digicel-Claro merger.

The FTC claimed that the merger would not be beneficial to consumers.

Supreme Court Judge Almarie Sinclair Haynes ruled in May 2012 that the FTC had jurisdiction over the Telecommunications Act.

She further ruled that the section 17 of the Telecommunications Act applied to mergers and acquisitions such as the transaction between Digicel and Claro.

Digicel appealed the Supreme Court ruling arguing that Justice Sinclair Haynes erred in her 2012 ruling because the Fair Competition Act does not cover acquisitions.

The Court of Appeal in ruling in favour of Digicel made no order regarding costs.

Digicel was represented by Queen's Counsel Michael Hylton and attorney-at-law Georgia Gibson-Henlin.

Gibson-Henlin said yesterday that the ruling by the Court of Appeal ends the dispute in the local courts in relation to the merger.

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